Commercial Insurance Basics

8/10/2022 (Permalink)

Property coverage is an essential item in every business budget. Most commercial insurance policies cover damage to your structure in San Diego, as well as any equipment, furniture or other items that are marred or destroyed in a fire. The answers to the following questions can help you decide which policy to purchase.

What Does a Commercial Insurance Policy Cover?

A basic policy is designed to pay for sudden, accidental occurrences that cause harm to your property. It prevents you from having to pay the cost of fire damage mitigation services out of pocket, and it doesn't just cover the building itself. Other features of your property may be included in the policy:

• Office equipment
• Furniture
• Landscaping
• External structures
• Fences
• Inventory
• Important documents
• Manufacturing machines

What Factors Affect Cost?

Most commercial insurance coverage provides comparable protection, but if there are factors that put your business at a higher risk of fire, your policy will likely cost more. For example, a restaurant owner is probably going to pay more for insurance than someone who runs an office building. Newer buildings with better safety features such as fire-resistant building materials and a state-of-the-art fire suppression system can often get better insurance rates. When you meet with your insurance agent, be sure to ask about the factors that affect the cost of your policy.

Does It Matter Whether You Own or Rent?

If you own property, you need insurance to cover all the items listed above in the event of a fire. If you are renting from someone else, though, you still need to protect yourself. Your landlord's policy will probably only cover the items he or she owns. You still need coverage for the items inside, such as computers, phones and files.
A commercial insurance policy can save you a lot of money in the event of a fire. Make sure you have the right coverage for your business.